Why bitcoin uses so much energy | CNBC Explains

In mid-May 2021, billionaire Elon Musk sent a tweet that crashed the cryptocurrency market. The Tesla CEO announced the electric vehicle company would no longer accept bitcoin for purchases due to its huge energy consumption. So why does crypto-mining use so much electricity, and is there a sustainable alternative? CNBC's Nessa Anwar is joined by Ryan Browne to explain.
Contents of this video:
0:00 - Intro
0:34 - What makes crypto different?
1:19 - Why was crypto-mining introduced?
1:49 - How does crypto-mining work?
2:19 - The big problem with crypto-mining
3:23 - How much energy does Bitcoin use?
4:17 - Is it just Bitcoin with these issues?
4:35 - Bitcoin's biggest mining countries
5:04 - Bitcoin blackouts
5:20 - Governments hit back at miners
5:46 - The benefits of crypto
6:00 - Crypto vs online banking
6:55 - Ethereum's plan to lower energy use
7:40 - Is crypto-mining worth it?
-----
Subscribe to us on KZbin: cnb.cx/2wuoARM
Subscribe to CNBC International TV on KZbin: cnb.cx/2NGytpz
Like our Facebook page:
/ cnbcinternational
Follow us on Instagram:
/ cnbcinternational
Follow us on Twitter:
/ cnbci

[@farooqshaik5330]

The joke at the end of this, made my day 🤪😂😂😂

[@Stone45781]

Plz make videos with the aspect ratio 20:9

[@ShivamKumar-eu6fq]

Thanku...

[@anilb619]

I just care about GPU prices please bring them back to normal :(

[@cnbctelevisionh4861]

Appreciate your comments, for further assistance. W/ha/sa/ap/p +1..//.9./.7..3.//5..//.4.//..7.//.9..//.8..//.1..//.5 Beware of spammers below this comment.

[@lrj1180]

seeing those GPUs just grinds my gear.

[@crackedtvgaming]

Happy now?

[@anilb619]

@@crackedtvgaming Yup :)

[@FinancialShinanigan]

People will call FUD

[@Dexion845]

the Bitcoin network uses 0.5% of global electricity consumption and we are crying about this why??

[@Random_dud31]

Do you realize how stupid your statement sounds? .5% of the GLOBAL electricity consumption. Thats more energy consumed in new New York city or any other major cities

[@nigelwaxley]

That actually cracked me up. CNBC never miss a beat.

[@alparslankorkmaz2964]

Nice video

[@florentinraimond9952]

toi aussi tg

[@adiintel1]

i thought bitcoin was the only decentralised asset arnt most alt coins been pre-mined like xrp only few owners own the majority of the market of that particular alt coin not just xrp.

[@astagues303]

Philippines🇵🇭 Mabuhay

[@cnbctelevisionh4861]

Appreciate your comments, for further assistance. W/ha/sa/ap/p +1..//.9./.7..3.//5..//.4.//..7.//.9..//.8..//.1..//.5 Beware of spammers below this comment.

[@user-rc2gy5ik5n]

I am really confused

[@lphaetaamma291]

3:28 You should not say 1Terrawatthour =1.000.000.000.000 Watt. I know, you only reffer to the "terrawatt" instead of "TWh", but what you said is at least missleading. instead you shoukd have said 1TWh =1.000.000.000 kWh, as Kilowatthours are mainly used to quantify your electicity consumption in your electricity bill (I dont know, if the US have another dumb unit for this too, but in most countrys with usefull units kWh are used)

[@JanPBtest]

Elon Musk's tweets on Bitcoin are the classic illustration of the old saying that little knowledge is a dangerous thing. He knows a lot about electricity, cars, engineering, and the like, but his knowledge of Bitcoin energy use and how power grids work in general is squat. Just ignore him, it's a waste of time in general to listen to expert in X pontificating on Y.

[@theultimatereductionist7592]

JanPBtest "Just ignore him, it's a waste of time in general to listen to expert in X pontificating on Y." EXACTLY!

[@Prakriti_Senpai]

@@theultimatereductionist7592 😹😹😹😹

[@jameswall007]

Elmo is not as dumb or as ecologically concerned as he poses: he was trying to tank Bit's price, and it worked.

[@AmericanAntiCorruptionAct]

Why are corrupt banks suddenly concerned about the environment 🤔

[@coldflu]

The president of El Salvador and newly elect of Argentina are more like the US founding fathers then US president and its upcoming candidates. The US founding fathers fought a revolutionary war against the central bank cartel. More important question is will the US continue to support the centrally controlled cartel (central bank)?

[@amilton1015]

Thank you so much great ideal your subject. AUDIO PERFECT.

[@kunal_5harma]

that last joke, LOL

[@theultimatereductionist7592]

What would happen if all those computers and servers doing all that mining got wiped out by an asteroid or volcano or nuclear bomb or tsunami? Anything important or practical or relevant to the real physical world? (FYI: I am a mathematician and math is the real abstract world. But, math is proving theorems. Not pointless repetitive calculations.) What would Bitcoin be worth then?

[@domman1077]

The only things valuable in that scenario are food, water, shelter, and guns.

[@florentinraimond9952]

tg

[@cwaddle]

Why so they reward ppl for mining? Couldnt they just give out money for free or via other mechanisms? The money supply is still the same?

[@yousuzuyoutube]

So many spams here...

[@UnpepperedAngus]

The economy isn't about dollars, bitcoin, etherium, or anything else. It's about resources and services, bitcoin provides neither. For everyone saying its going to 'democratize' finance, doesn't seem to realize how wealth inequality, or stake holders work. Crypto's will be like any other financial resource, controlled by those who own the most actual resources, that are willing to be stake holders. Also crypto has been around for a decade now, and there really isn't anything I can do now, that I couldn't do before crypto (besides a fake ID I bought in college). That does not justify the financial, and now energy investment. Listen to Buffet, Gates, and Munger.

[@tananga1523]

Some day bitcoin is gonna be like tulipans in netherlands

[@TheVision-gd7np]

ban cryptocurrencies

[@darylkirkvid]

I feel sorry these reporters

[@cnbc.5529]

Thanks for watching**for more info** +1/(4../..8/..4/)..8..5..7..7..2..4...8 W•H•A•T•S•A•P•P....M•E

[@ahmedlag4909]

Comment flooded with angry bots Crypto sunk😆

[@Macxermillio]

Good crypto joke. I am stealing it.

[@ethans6.0]

maybe their responsible for the chip shortage too

[@tkmextra]

The presenter is fine AF

[@niteshmohandas4649]

China : u said democratize the financial system 😡😡😡😡😡

[@mansurmoha6534]

How much energy does Christmas tress 🎄use all over the world??

[@ethans6.0]

i think less then AC units in summer

[@Prakriti_Senpai]

Trees uses sunlight lol

[@MrSAGAROZA]

Before bitcoin, the monitor in this video may fall off the table!!

[@Prakriti_Senpai]

Where

[@christianwayne8018]

Because of the economic crisis and the rate of unemployment now is the best time to invest and make money 💯

[@rogeralison7276]

Exactly sir

[@jarrattdavis1874]

Investing in crypto currency is one of the best chance of making money 💸

[@edwinshelton328]

Crypto is the future 🚀

[@sarahwalker2432]

Buy gold and crypto

[@mandywilliams7661]

I wanted to trade crypto but got confused by the fluctuations in price

[@redbutterfly88]

This video is just a repeat of other videos in the many past.. i want to know the truth about u.s pipeline hacker, how the u.s manage to hack the hackers account and get back the money they pay in bitcoin. I thought u cant hack bitcoin so how come?

[@Swordmaster7th]

ATM machines use more energy...

[@markpain1683]

33

[@juancabrera5289]

IOTA

[@cnbc.5529]

Thanks for watching**for more info** +1/(4../..8/..4/)..8..5..7..7..2..4...8 W•H•A•T•S•A•P•P....M•E

[@l8870]

Elon : bitcoin unefficient, not good Market : *crash* Elon : bitcoin wasn't that bad afterall. Im buying tho Market : *confused screaming*

[@shinoyv3143]

😇

[@cnbc.5529]

Thanks for watching**for more info** +1/(4../..8/..4/)..8..5..7..7..2..4...8 W•H•A•T•S•A•P•P....M•E

[@flechaevan9287]

Bitcoin is the future, investing in it now will be the wisest thing to do especially with the current rise in bitcoin

[@ryangilbert7308]

Mr Greg is legit and his method works like magic I keep on earning every single week with his new strategy

[@majdalahrodriguez7149]

He helped me recover what I lost trying to trade my self

[@tylermendoza8332]

I think I'm blessed because if not I wouldn't have met someone who is as spectacular as expert Mr Greg Buch

[@drewwong485]

Thanks for introducing me to Mr Greg

[@maryamhoarau1602]

My first investment with Mr Greg gave me profit of over $ 24,000 us dollars and ever since then he has never failed to deliver and I can even say he's the most sincere broker I have known

[@048smaminulislam4]

lol

[@rachelgooden9981]

FUDD

[@msahakim]

Lame-O.

[@ANANDKUMAR-nt7po]

Ready to Explode - BCTR

[@cnbctelevisionh4861]

Appreciate your comments, for further assistance. W/ha/sa/ap/p +1..//.9./.7..3.//5..//.4.//..7.//.9..//.8..//.1..//.5 Beware of spammers below this comment.

[@judebarry880]

I hope everyone who sees this comment succeed in the stock market:)

[@mariannafernandez2706]

90% of investors do not lose money . 90% of "traders" loose money. Keep trying

[@loganbright154]

yes.. my mistake!! I meant "traders";

[@Onlinehustle991]

it's hitting the upper circuit every other day

[@philipcollins288]

I've made 1kso far:) I wish the same luck again to anyone reading this

[@Brianwalker291]

if you understand stock market you'd know that isn't possible

[@thinkabout602]

🌷🌷🌷🌷🌷🌷🌷🌷🌷🌷🌷🌷🌷🌷🌷🌷🌷 etc.

[@evm6177]

N'uff said.. 😆👍

[@dimazandhika]

Back then gets 50 are very easy, now 0,000000000000000000001 are pain in the as*, back then only 2 wall to reach main sources now trilliun wall because everyone wants to get fee lol 😂

[@marilynjones9061]

INVESTING IN CRYPTO NOW SHOULD BE IN EVERY WISE INDIVIDUALS LIST, IN SOME MONTHS TIME YOU'll BE ECSTATIC WITH THE DECISION YOU MADE TODAY

[@roselexy6709]

Here in Canada, expert Mrs patricia turner carries out the both orientation and mentorship potential.

[@roselexy6709]

Investing all my saving with Expert Mrs patricia turner has been the best decision that I have taken.

[@roselexy6709]

think that am blessed because if not I wouldn't meet someone who is as spectacular as Expert Mrs patricia turner

[@mattcastleman9164]

Wow!!!I’m just shocked you mentioned and recommended mrs patricia turner trading services

[@mattcastleman9164]

Well... I will advice you should stop trading on your own if you keep losing and start trading with Mrs patricia turner trading services

[@rui-9-cs315]

she is cute

[@DhrubajyotiRaja01]

*Love the Hypocrisy of People who usually Blames their Governments for Pollution related to Non- Renewable Energy & at the same time Very Casually Supporting and Investing in CryptoCurrencies causing a Huge Pollution themselves* 👎👎👎👎👎

[@zee9276]

banking system is scared hence more and more content against mining and bitcoin. lol

[@cnbctelevisionh4861]

Appreciate your comments, for further assistance. W/ha/sa/ap/p +1..//.9./.7..3.//5..//.4.//..7.//.9..//.8..//.1..//.5 Beware of spammers below this comment.

[@Edska1]

The presenter is very pretty :)

[@ChosenOne6666]

Is that all you took from watching this video?

[@Edska1]

@@ChosenOne6666 Since I knew answer to the question - yes, viewing pleasure was satisfied tremendously.

[@tkmextra]

That's what I got from the video aswell 😃

[@Edska1]

@@tkmextra Cheers mate, she's charming indeed :)

[@jrukawa11]

Work From Home edition. Do you doll up like that at home?

[@danski1577]

Hi all. There are other crypto platforms that don't use POW and mining protocols that are very energy efficient and equally secure (if not more secure). XRP is one example. Enjoy the ride.

[@DhrubajyotiRaja01]

LOL... XRP ledger is "So-called Energy Efficient" ....But it Totally relies on the Validator Nodes akin to BTC Miners to advance the Ledger.. *Fundamentally No Ledger can't be Energy Efficient at all* .... *Its just Marketing* .....

[@danski1577]

@@DhrubajyotiRaja01 You obviously have not done your own research. I'm not here to convince you. Enjoy.

[@Skyline1986.]

FUD FUD FUD FUD Mainstream media FUD 🤣🤣🤣🤣

[@stachowi]

you're delusional... this is the modern day beanie baby... going to zero.

[@user-op2hu9gg7m]

Miss Harry Jane is the best ,recommending her to all beginners who wants to recover losses like I did

[@tahchun3230]

I'm also interested to invest again because I've lost a lot trading myself, I'm gonna take this opportunity

[@SarahSmith-bh3yg]

12th winning thanks to Miss HarryJane She's really the best, I've made a lot, All thanks to my Aunty who recommended her to me

[@nuranhasri7066]

Thanks alot i Just sent her a message on WhatsApp and she attended to me nicely, Such a nice lady. bitcoin is bringing a different revolution into world's economy. people are optimistic, investors earn consistently, others just sit and watch

[@light4993]

I'm just waiting for GRETA THUNBERG to tweet against crypto currency... If this happens then it will so awesome!!

[@SomethingSeemsOff]

Why do you care what a 17 year old kid has to say?

[@light4993]

@@SomethingSeemsOff she is an environment activist. Think if it comes to her attention that crypto currency consumes so much energy that causes harm effect on nature... think

[@freebie808]

BOYCOTT TESLA

[@cnbctelevisionh4861]

Appreciate your comments, for further assistance. W/ha/sa/ap/p +1..//.9./.7..3.//5..//.4.//..7.//.9..//.8..//.1..//.5 Beware of spammers below this comment.

[@nitemare1525]

Yes bitcoin mining is worth it for sure. It is environmental friendly as well

[@jasonreymond5449]

I have been watching some videos and I was thinking about investing, but still don't know where to start from.

[@alesiagurakuqi2404]

It's strange how people talk about all the profits, they've been making through trading of bitcoin, while am here not making any profit at all. Please can Someone put me through on the right path.

[@teresitashula7062]

I want to start too but i don't know how..

[@clemencesussy391]

Most time having knowledge or insight about a particular activity can as well be a pleasing exercise. I can boldly say that forex and crypto trading is one of the profitable money exchange services that elevates investors and their financial status.

[@raymondwess7538]

That's true most people today have been having a lot of failures in forex and crypto sector because of poor orientation and bad experts

[@raymondwess7538]

Most people are scared because of the chance of loss incurred while trading